In 2004, as I turned 50, I made a rather quick decision to leave my job as a Learning Manager for a Fortune 200 company and begin my own consulting business. I didn’t have clients lined up, but I did have severance for seven months. I didn’t have a great network, but I was clear on the work I wanted to do. I didn’t have a business plan, but I did have a passion for the work I was offering, the ability to learn quickly and a strong desire to make my own way.
Some told me I was foolish. Others said it was risky. Even others predicted that no one would hire me for the work I wanted to do!
Over a decade later I’ve proven the naysayers wrong. I’ve made a good living doing this work – and earn far more than had I stayed. I am doing the work I’m good at and that I have a passion for, and people do pay me to do it. I have freedom and flexibility and actually feel “safer” than my friends who face relentless cycles of downsizing and reorganizations.
It may have been a hasty decision, but it was one of the best I’ve made in my lifetime.
And my story is not unique.
If I could do it, so can you.
More and more highly skilled professionals are building their own independent consulting business. Business consulting used to be the domain of the big 4 consulting companies: PwC, KPMB, Deloitte, and EY. In similar ways to which Marriott is being usurped by Airbnb, and Yellow Taxis by Uber, there is an increasing market for small independent consulting firms.
In today’s market, you don’t need to go with Accenture or KPMG to be a highly respected and paid consultant. You can go it alone as your own small business. And increasingly, top talent is choosing the path of independent consulting because of the earning potential, the freedom, and the ability to have more control over their life and their work. Some pursue this path after a bellyful of corporate politics and others to pursue a career that allows them to really focus in on the work they are drawn to. And many others do this.
What to Consider Before You Become an Independent Consultant
Let me be clear, independent consulting is not a path for everyone. In fact, I think there are four key criteria that are important as you consider this.
1. Your Real Life Experience
You must have deep expertise in an area that businesses have a need to hire external talent for. As corporations run leaner, boomers retire, and markets shift faster and faster, they increasingly look to external professional help. However, know that they are looking to hire people with proven capability, meaning that someone with experience in supply chain or IT or marketing is much more in demand than a recent college grad. This is great news for those of us who have worked in a corporate environment – for that real life experience enables us to help clients implement solutions that really work, to understand the barriers faced in real organizations with real people and problems, and to be able to find solid solutions that work. Difficult to do if all you’ve had is “book learning”.
2. If There is a Market
Not only must you have deep expertise, it must be marketable expertise. There must be some demand for your skills and clients willing to pay for it. It used to be that “business consulting” was primarily focused on business strategy and finances. Not the case anymore. The breadth of talent to consultants bring encompass many specialized skills nestled within any of these organizational functions (just to name a few to give you an idea):
- Finance and accounting
- HR
- IT
- Marketing
- Sales
- Safety & Environmental Compliance
- Training & Development
- Operations
- Non-profit Management and Governance
- Health Care
No matter your expertise you’ll want to answer these questions:
- Are your skills relevant?
- Up to date?
- Transferrable across companies?
- Across industries?
- Either in short supply, cutting edge or niched enough that an organization will look to outside help?
If you have those skills- great! If not, ask yourself what you can do to obtain them. Consider certificate programs. Lateral job transfers. A hop to another company where you can develop the skills and experience you need.
3. Your Desire to Own and Run a Small Business
For some, wanting to own and run a small business is the primary reason that independent consulting is attractive. For others, it is what is most frightening. The good news is that you can be successful as a small business, with you as the only employee. Even better news is that it is a high margin / low overhead business. And the barrier to entry is what you already have: you skills, experience and network. You can start with a minimal investment and it won’t take years to be profitable.
But it is a business. Which means that you will need to think about marketing. And selling. And accounting. And IT. And liability. All of which can be done. But they do need done.
More good news is that as the “gig” economy has grown, so have the tools and services to support this kind of business structure. You can source virtual IT support, powerful business software, top notch tools and systems and virtual help easily these days.
So while there is a learning curve, trust me, it can be done.
4. Your Ability to Work Independently
I, for one, like the independence. I can chart my own direction, make decisions quickly, don’t mind an office where it is me alone. If you happen to be someone who can plan and then execute and who can get things done with a boss looking over your shoulder, you’ll be in hog heaven. If not, best to keep your day job.
Now let me be clear there are many paths to consulting. You can consult with the big firms (or mid-sized ones) where you are employed but doing the work of consulting. You can free-lance as a sub-contractor, where you work with a firm that finds and manages the work – and you provide the labor. All good for some folks, but what I am talking about here is YOUR OWN business.
There are many reasons you might take this independent path. My short list includes:
- Even higher income with fewer hours
- More freedom
- Increasing focus on the work you do best and enjoy the most
- Extraordinary personal and professional growth
- Travel (if you want) or Work from Home (if you want)
- Variety (if you need that sort of thing)
While a wonderful choice for many, including me, I would be remiss not to mention that no career option is foolproof. As an independent consultant, you have to face these realities:
- In demand skills shift: you must remain relevant. To do this you must keep abreast of the market and to continually invest in your biggest asset: YOU!
- Income can be irregular: Clients pay on their own terms, which means you might wait 3 months or longer from starting an engagement to getting paid. There will be rich months and lean months. The ability to manage cash flow and your personal finances will enable you to sustain when others have to fold their cards and seek a regular paycheck.
- It can be lonely: You are on your own. There are many days of just yourself in your home office. Of course there are times you are on client sites and interacting with clients. And other times that you are networking and out and about in social settings. But at the end of the day, it is you doing the work. You making the decisions. You charting the course.
Launch and grow your independent consulting business swiftly, smartly, and with support.
Looking at what has happened in the past 10 years, I see more and more opportunities for professionals to leverage their skills and expertise as independent consultants. It is estimated that 40% of the US workforce will be freelancing by 2020. Not all will be highly skilled consultants; but a great number will be.
Recognizing that, I founded LEAP Consulting to help others do what I’ve been able to do: earn a high income and take control of your life and your schedule. I encourage you to consider ways we can help you:
- Desire having “a tribe” around you for support? Check out our Prosper Community
- Looking for more in depth answers to your independent consulting questions? Read Kris Taylor’s book, Owning It, for keen insights on the promises and the pitfalls of consulting as a career.
- Wanting to learn about independent consulting on your own time at your own place? The LEAP Launch Series is your home for consulting knowledge and advice.
